fixed than when used equipment is purchased. (b) Purchase provisions. If new equipment is not available, or the price thereof is excessive, and it is necessary to advertise for used or reconditioned equipment, care should be taken to specify clearly just what quality or what degree of precision is required. Bidders should be requested to indicate the place at which the equipment may be inspected. The Government should make an inspection prior to the award. (See Subpart 4-14.1.) § 4-4.5099 Visual services. (a) Washington, D.C. area. All art and graphic, exhibit, still photograph, motion picture production requirements and photographic production equipment shall be ordered through the Office of information on a reimbursable basis, except as otherwise authorized by that Office. Projection equipment and still cameras are excluded from this requirement. (b) Field offices. Procurement officers shall assure that adequate consultation with information and visual equipment specialists is obtained in the making of purchases or contracts for visual requirements (see 3 AR Chapter 9). (c) Prior approvals. All procurement of motion picture production equipment, production services, and processing arrangements shall have prior approval of the Office of Information. (d) Microform Retrieval Equipment Guide. As a guide for determining equipment selection and other general information concerning the uses of microfilm retrieval equipment, agencies may obtain from GSA supply depots the Microform Retrieval Equipment Guide. Ordering information is shown below. year, to the payment of expenses properly incurred during that year, or to the fulfillment of contracts properly made within that year." This Act, effective July 1, 1949, superseded section 3690 R.S. 31 U.S.C. 712. (b) Interpretations of the law. The Comptroller of the Treasury (4 C.D. 553) in considering a case under section 3690 R.S. which also contained the foregoing language quoted from P.L. 159, ruled, in part, as follows: The purpose of section 3690 is to restrict the use of annual appropriations to expendi~ tures required for the services of the particular fiscal year for which they are made, .. work is actually begun within the fiscal year for which the annual appropriation applicable thereto was made, it may ordinarily be fairly held that the work was for the service of that fiscal year, and provision for payment for the work from the unexpended balance of the appropriation is therefore made by the clause, "for the fulfillment of contracts properly made within that year." There is no authority in an appropriation made specifically for the service of a particular fiscal year to enter into contracts for supplies, etc. for the service of a subsequent fiscal year, and therefore as to that appropriation such a contract is not "properly made within that year." The apparent strictness of the interpretation in the last paragraph above was, however, somewhat alleviated by the Comptroller General at a later date in the following language: Orders placed by a Government department or establishment during the month of June for such quantity of supplies or materials as are reasonably required to maintain a current running supply for such department or establishment until such time as deliveries can be effected under orders placed under the contract for the subsequent fiscal year are a need of the fiscal year in which ordered and obligate the appropriation for that year. (2 C.G. 825.) (c) Policy. It is the Department's policy, in strict compliance with the statute which restricts the use of appropriations made specifically for the service of any fiscal year, to insure that the same test of need is applied for any proposed expenditures at or near the close of the fiscal year as at the beginning or at any other time during the year. No unnecessary expenditures of year-end balances of funds (which would otherwise revert to the Treasury) for supplies, materials, etc., shall be authorized. (d) Pertinent factors. It is recognized that during the closing months of the year a considerable amount of purchasing may occur (1) because of the agricultural nature of the work, such as seasonal programs, (2) where no amount of advance planning can materially affect the timing of purchases, as in the cases where special appropriations are made late in the year and in such unusual instances as restoration expenses due to tornadoes and fires, unavoidable procurement delays, etc., (3) in connection with continuing appropriations, where fiscal-year ends have no particular significance in timing purchases, and (4) where, due to prudent program management, obligations for needed supplies, equipment or services have been deferred, as a matter of administrative determination, until the latter part of the fiscal year, in order that the activity concerned might be kept in position, during the earlier parts of the year, to meet emergencies or other exigencies that might arise, without the necessity for seeking a supplemental appropriation. (e) Documentation. Because of the continued interest in the general subject of year-end purchasing, agency procurement records should be so maintained that if required for reporting purposes factors having a significant effect on last quarter buying could be readily submitted. (f) Procurement planning. Program needs shall be identified by those responsible for procurement in cooperation with program managers. Such needs shall be scheduled for procurement at the time of year that is most advantageous, all factors considered, including those factors in paragraph (d) of this section. For purchase documents submitted to GSA near the end of the fiscal year see 101-26.104 of this title. [29 FR. 14286, Oct. 16, 1964, as amended at 85 FR. 17181, Nov. 7, 1070] Subpart 4-4.54-Leasing of Real other requirements of 101-18.107 and Subpart 104-18.1 of this title. See 1 AR 674 for required approvals for establishment, consolidation, change in location or abolition of offices. See § 104-18.150 of this title for required approvals for longterm leases under 7 U.S.C. 2250a. Leases shall be made only by persons to whom, or incumbents of positions to which, space acquisition and assignment authority has been delegated pursuant to § 104-18.104 of this title. When formal advertising is used or the annual rental exceeds $2,500, leases shall be made only by persons who have been delegated procurement contracting authority. (See 84-1.404 of this chapter.) [35 F.R. 3682, Feb. 25, 1970] § 4-4.5402 Forms, specifications and provisions. (a) Forms. Standard Forms 2, 2-A, and 2-B shall be used in accordance with FPR Subpart 1-16.6 for all advertised and negotiated leases of real property other than vacant land in the United States and its possessions. These forms may be used elsewhere at the discretion of the agency, with the additional provision that "Government" whenever it appears in the forms means the United States Government. They may also be used with appropriate modifications for leasing of vacant land. Also, modifications may be made as permitted by Subpart 1-16.6 except for the automatic renewal provisions referred to therein. Automatic renewal provisions are prohibited. (b) Specifications and general provisions. Specifications and additional general provisions, not inconsistent with Standard Form 2-A may be used as required. (c) Termination provision. There is no objection to a provision authorizing termination by the Government upon appropriate written notice if it is anticipated that the premises may not be required for the full term of the lease. This becomes particularly important when it is anticipated that Governmentowned space may become available. However, termination provisions tend to increase costs and each case should be considered on its merits. (d) Renewal option provisions. Provisions for renewal from year to year at the option of the Government may be included. Such renewals must be accomplished by issuance of affirmative notice prior to the beginning of each renewal term. No automatic renewal provisions shall be used. (See § 4-4.5410.) [33 F.R. 11765, Aug. 20, 1968] § 4-4.5403 Availability of Governmentcontrolled space. Prior to taking leasing action, agencles should investigate thoroughly to determine whether suitable space is available under Government ownership, under lease by other Government agencies, or can be obtained rent free. (See §§ 101-18.102 and 101-47.201-2(b).) [33 FR. 11765, Aug. 20, 1968] § 4-4.5404 Formation of lease contracts. Leases amounting to more than $2,500 per year shall be made by formal advertising where feasible. Normally, this will be true where (a) more than one prospective lessor has available real property meeting the Department's requirements satisfactorily, (b) there is available specifications adequate to permit competition between prospective lessors on a common basis, and (c) sufficient time is available for public advertising. Otherwise leases shall be made by negotiation in accordance with FPR Part 1-3. (See FPMR § 101-18.102(c).) Advertised leases shall be made in accordance with Part 1-2 to the extent applicable, except that Standard Form 2-A shall be used in lieu of Standard Form 32. Where a lease is made as the result of advertising, the accepted bid shall be incorporated in the lease. [33 F.R. 11765, Aug. 20, 1968] 84-4.5405 Period of lease. A lease shall cover only the period of time for which the funds to be charged are available, except in the case of longterm leases pursuant to § 104-18.150(a). [33 FR 11765, Aug. 20, 1968] The Economy Act of 1932, as amended (40 U.S.C. 278a), limits the annual rental to be paid for any building or part of a building in the United States to 15 percent of the fair market value of the building or part thereof, as the case may be, occupied by the Government, except where the rental does not exceed $2,000 per year. The amount to which this limitation is applied is determined by decent of the fair market value of the buildducting from the rental stated in the lease the actual cost of any services furnished by the lessor, Bids shall not be No lease shall be entered into for the rental of premises owned by an employee of the Federal Government except when all of the following conditions have been met: (a) It has been determined that the activity must be located in the particular city or town; (b) Formal advertising, including distribution of invitations to bid to all possible sources of supply, reveals no other suitable premises are available; (c) The Government's contracting officer has no interest directly or indirectly in the premises; and (d) The transaction is aproved by the Agency Head in writing. [33 F.R. 11765, Aug. 20, 1968] § 4-4.5409 Contingent fees. The procedures in Subpart 1-1.5 shall be followed in connection with leases. [33 F.R. 11765, Aug. 20, 1968] § 4-4.5410 Renewals. (a) Renewal by notice. Where a valid option to renew exists, it is not necessary to obtain competition prior to issuing the notice of renewals; however, agencies should be careful to determine that cheaper suitable premises are not available prior to taking renewal action. (b) Renewal by agreement. Where there is no option to renew a lease, the lease may be extended from year to year (16 Comp. Gen. 931) if informal competition is obtained each year showing that the continued occupancy of the premises is to the advantage of the Government. Prepare a record of competition obtained and file with the lease. Any change in the terms of the lease may be made in the renewal agreement if justified by the competition except that an additional renewal option cannot be obtained in a renewal agreement unless there is formal competition, or except where the While normally it is not necessary to record leases of the Government, the recording laws in certain states provide that unless recorded, a lease containing a renewal option is not valid against a subsequent purchaser of fee ownership of the property covered by the lease, even with knowledge. Where such recording laws exist, leases containing a renewal option should be recorded if failure to record would result in loss to the Government. Likewise, leases that contain an option by the Government to purchase the premises should also be recorded to protect the interest of the Government. [33 FR. 11765, Aug. 20, 1968] Blank paper and blank enve- 4-5.5402-2 Types available. 4-5.5402-3 Method of acquisition. 4-5.5403 Distribution of publications. Subpart 4-5.57-Office of Operations 4-5.5701 Central Supply Branch. 4-5.5701-1 Authority. 4-5.5701-2 Delivery. 4-5.5701-3 Forms available. 4-5.5701-4 Ordering standard and AD forms. 4-5.5701-5 Method of acquisition. 4-5.5701-6 4-5.5702 4-5.5703 Handling charges. Departmental contracts. Procurement by the Office of Operations. 4-5.5703-1 General. 4-5.5703-2 Documentation. 4-5.5703-3 [Reserved] Administration 4-5.5703-4 [Reserved] 4-5.5703-5 Contract administration. Subpart 4-5.58-Purchase From Government Agencies Under Section 601 of the Economy Ad Under its working capital fund authorization (7 U.S.C. 2236), the Agricultural Research Center at Beltsville, Md., may furnish to other Government agencies on a reimbursable basis (a) facilities, and services, (b) equipment rentals, and (c) supplies (such as plumbing, heating, lighting, lumber, etc., but not including office supplies), equipment, and materials, stores of which are maintained at the Center. The working capital fund of the Center may also be reimbursed for building construction, alteration, and repairs. [29 FR 14310, Oct. 16, 1964, as amended at 41 FR 26902, June 30, 1976] Subpart 4-5.53-General Services Administration pots are contained in this catalog. Orders must be submitted according to the Federal Standard Requisitioning and Issuing Procedures (FEDSTRIP) as found in the FEDSTRIP Operating Guide, 41 CFR 101-26.2 and the USDA National Finance Center Operating Procedures Handbook, NFC FEDSTRIP System. All FEDSTRIP orders submitted by units of the Department of Agriculture must be on Form AD-633, Multiuse Standard Requisitioning/Issue Statement. AD-633 shall be submitted only to the USDA National Finance Center for transmittal to GSAthe Form should never be submitted directly to GSA. (b) Copies of the GSA Stock Catalog may be obtained from the Printing and Distribution Branch, Federal Supply Service, General Services Administration, Washington, D.C. 20405. Agencies may also receive copies by being placed on the GSA distribution list. See § 45.5303-5 for mailing list procedures. [41 FR 26903, June 30, 1976] § 4-5.5301-3 Utilization of GSA Stores Depot Stocks. All executive agencies within the United States (including Hawaii and Alaska) shall requisition their requirements of stock items listed in the GSA Supply Catalog and supplements thereto, exclusively from the stores stock of GSA, except as provided below. The exceptions of this section are not applicable to standard and optional forms. Exceptions are as follows: (a) When suitable Government-owned used, excess, or surplus property can be secured; (b) When the total value of the line item requirement is less than $10; (c) When the items are required under public exigency, when time or circumstances do not permit obtaining the item from GSA; (d) When the items must be procured by small local purchases at the site of work or point of need to satisfy day-today requirements that cannot be foreseen. Quantities must not exceed immediate needs. Imprest funds, Form AD744 (Purchase Order/Invoice/Voucher), or Blanket Purchase Arrangements are available for use; (e) Marginally punched stock forms not available in the GSA stock system must be purchased under GPO contract in accordance with § 101-26.703. Marginally punched custom forms should be ordered by submitting form AD-78 to |